Michael Kors, the lifestyle brand that went public in 2011, has already surpassed Ralph Lauren in value.
The eponymous line by fashion designer and Project Runway judge Kors has a market capitalisation of $US15.5 billion, reports Peter Lattman at Dealbook.
Meanwhile, Ralph Lauren’s 30-year-old company is worth $US15.2 billion, according to Lattman. The brand went public in 1997.
Michael Kors also got the most internet searches of any brand in 2012, according to a report by Digital Luxury Group.
The brand has excelled because it has stayed focused on the market’s sweet spot — people with money who aren’t rich yet.
With Michael Kors’ $US450 handbags and $US250 watches, this demographic can show off their success without feeling like they’re going overboard, according to a report by luxury marketing expert Pam Danziger.
Michael Kors also made the wise decision to release a lower-priced diffusion line that appealed to a wider range of consumers.
The line, MICHAEL Michael Kors, offers cheaper products with a similar aesthetic to the designer’s namesake brand.